A.M. Best has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of AMI Insurance Limited (AMI) (New Zealand). The outlook for both ratings is stable.
The rating affirmations reflect AMI's established business profile, good operating performance and robust reinsurance program. The ratings also consider the support it receives from its parent company, IAG (NZ) Holdings Limited, in terms of risk management and strategic initiatives for business integration.
These positive rating factors are partially offset by AMI’s marginal risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Prospectively, however, AMI’s BCAR is projected to improve significantly through full earnings retention.
Factors that could result in favorable rating actions include sustained earnings growth from underwriting. Negative rating actions could occur if the company experiences a major operating loss, which will lead to a significant deterioration in risk-adjusted capitalization.
The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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Jason Shum, +852-2827-3430
Ken Chow, +852-2827-3426
Senior Financial Analyst
Rachelle Morrow, +(1) 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations